Hong Kong-listed Chinese dairy maker Yashili International Holdings Ltd. says that Temasek Holdings, private equity firm Hopu Investment Management Co. and three private investors will buy a 13.24% stake of the company from China Mengniu Dairy for HK$1.6 billion ($213 million).
The investors will acquire 471.1 million shares in Yashili at HK$3.50 apiece.
Temasek-controlled Dunearn Investments will buy 220 million shares and Hopu-owned VITEL Group Limited will buy 177.7 million shares. They will respectively hold 6.19% and 4.98% of Yashili after the transaction.
Once the transaction is completed, Mengniu will hold a 76.58% stake in Yashili, down from 89.82%.
Mengniu offered US$1.6 billion in June for all of Yashili, but it received offers for 89.82% of Yashili’s stock, just short of a 90% threshold that would have enabled Mengniu to make a “compulsory acquisition” of the remaining shares.
Mengniu is selling down its stake in Yashili to ensure the still-listed company meet Hong Kong’s 23.43% public float requirements.
The three other investors in the deal are Diverse Profits Ltd., Lead Rich International and Wincon Capital Investment.